Invoice Type Type
Standard
Issue ssued d/ Created By Supplier
Matched To
Amounts
PO Matched / Not Postive (+) Matched
Mixed Invoice Buyer
PO Matched Invoice Matched
Postive (+) Negative (-)
Credit Memo
Supplier
PO Matched Invoice Matched
Negative (-)
Debit Memo
Buyer Supplier
PO Invoice
Negative (-)
Prepayment
Buyer
Invoice Matched
Negative (-)
Expense Reports
Buyer
Invoice Matched
Postive (+) Negative (-)
Retainage Release
Buyer
PO Matched
Postive (+)
Witholding Tax (WHT)
Automatic / Manual
To Invoice
Postive (+)
PO Price Adjustment Invoice
Buyer
PO Matched Invoice Matched
Postive (+) Negative (-)
Quick Invoice
Buyer
Description
Standard Invoice are invoices from a supplier representing an amount due for goods or services purchased. Standard invoices can be either matched to a purchase order or not matched. Standard invoices must be positive amounts. Mixed Invoices are invoices or credit/debit memos for which you can perform both positive and negative matching to purchase orders and to other invoices.
Credit Memos are memos from a supplier representing a credit amount toward goods or services.
Debit Memos are invoices you enter to record a credit for a supplier who does not send you a credit memo. A prepayment is a type of invoice you enter to make an advance payment to a supplier or employee.You can enter two types of prepayments: Temporary and Permanent. Temporary prepayments can be applied to invoices or expense reports you receive. Permanent prepaymentscannot be applied to invoices.
Expense Reports are invoices representing an amount due to an employee for business-related expenses.
Retainage release is the act of releasing, or paying, that portion of a payment that was withheld until a substantial portion or all of the service procurement work is completed. The amounts retained during the life of the contract must be released and paid to the supplier or subcontractor once all or a substantial portion of the work is completed.
Similar to Automatic VAT processing, Oracle provides the feature for automatic WHT processing. To perform automatic withholding, assign a WHT group (not WHT) to an invoice or invoice lines. WHT group defaults from supplier site. If required, the user can override the default and select a different WHT group. PO Price Adjustment Invoices are used for recording the difference di fference in price between the original invoice and the new purchase order price.
Used for quick, high-volume invoice entry for invoices that do not require extensive validation and defaults. After entry, you import these into the Payables system. Validation and defaulting occur during import
Scenario
When Buyer needs to pay to supplier for f or the Goods / Services which is procured form the supplier. Due to manual entry of Standard invoice sometimes there might be manual typo error in amount. To have Invoice adjustments Mixed Invoices are created. For example, you can enter an invoice for -$100 with Invoice Type Mixed. You can match to an invoice for $-200 $-200,, and match to a purchase order for $100. For instance, assume that SellerCorp had issued a sales invoice for $800 for 100 units of product that it shipped to BuyerCo at a price of $8 each. BuyerCo informs SellerCorp that one of the units is defective and SellerCorp issues a credit memo for $8. The credit memo will cause cause the following in SellerCorp’s accounting records: 1) a debit of $8 to Sales Returns and Allowances, and 2) a credit of $8 to Accounts Receivable. In other words, the credit memo reduced SellerCorp’s net sales and its accounts receivable. When BuyerCo records the credit memo, the following will occur in its accounting records: 1) a debit of $8 to Accounts A ccounts Payable, and 2) a credit of $8 to Purchases Returns and Allowances (or Inventory). A vendor may issue a debit memo to a customer if he undercharged the customer. Further, if the customer received defective goods, he may return the damaged merchandise to the vendor along with a debit memo. Temporary prepayments: For example, you use a Temporary prepayment to pay a hotel a catering deposit. When the hotel's invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay. Permanent prepayments: For example, you use a Permanent prepayment to pay a lease deposit for which you do not expect to be invoiced. If you have paid advances to an employee you can use this window to apply advances to expense reports to reduce the amount you pay. You can also apply a hold to an expense report to prevent payment. You Y ou can apply advances and holds to expense reports that are from any source. Note* Mainly used when you are using Oracle Projects, OTL, iExpense Modules. With Oracle's Complex Work feature, contract administrator can negotiate retainage terms with the contractor and capture these as part of the contract. These terms include Retainage Rate and Maximum Retainage Amount.
A large Television broadcasting and production company had the following concern. They take the services of large number of TV artists who are employed for a very short period of time. While making a payment to them the company has to deduct taxes and pay them. For example, If a supplier sends an invoice for f or a change in unit price for an invoice i nvoice you have matched to a purchase order, PO Price Adjustment Invoices can be used to adjust the invoiced unit price of previously matched purchase order shipments or distributions without adjusting the quantity billed. Payables uses information you enter in the Quick Invoices window to create invoices in Payables. You enter invoice header and line li ne information in this window. This information is stored in the Payables Open Interface tables. Because the system performs limited validation and defaulting of invoice i nvoice values while you are entering invoices, you can enter invoices more quickly in the Quick Invoices window than you can in the Invoice Workbench (the Invoice Workbench is the Invoices window and its associated windows).
Type Invoice Hold
Description You can manually apply one or more Invoice Hold Rea using the Invoice Holds window of the Invoice Workbe
Payment Holds Scheduled Payment Hold You can hold payment on part of an invoice by placing (Manual) payments on hold in the Scheduled Payments window In the Supplier Sites window, you can enable the Hold Supplier Hold Hold Unmatched Invoices options. You also have the o Limit for a supplier site.
s d l o H m e t s y S
Hold Name Can't Funds Check Amount Invalid PO Supplier Matched Required Max Quantity Ordered Max Quantity Received PO Not Approved Price Quantity Ordered Distribution Variance
Hold Name
s d l o H e c i o v n I
Description Invoice project, task, award (PTA) does not equal the p Invoice amount exceeds invoice amount limit specified Invoice matched to an unapproved or invalid purchase Hold Future Invoices" has been designated in the supp Invoice not matched to purchase order. Quantity billed exceeds the total quantity ordered + to Quantity billed exceeds the total quantity received + t Matched purchase order not approved. Invoice unit price exceeds the total purchase order uni Quantity billed exceeds the total quantity ordered X (1 Invoice amount does not equal sum of invoice distribu Must adjust invoice distributions or invoice amount an
Hold Reason
Amount
Invoice amount is more than the invoice amount limit
Invalid PO
You apply this hold when a supplier does not provide matching
Natural Account Tax
You assigned a tax code to an expense or asset accoun enabled the Enforce Tax From Account Payables optio match the tax code assigned to the account.
Pay When Paid PO Deliverable Supplier
Subcontractor cannot be paid until the customer pays. PO deliverables are not submitted by the subcontract You enabled the Hold Unvalidated Invoices option for window
Withholding Tax
Payables cannot perform automatic withholding of tax
Custom Holds Below API's can be used to put invoice on hold. Insert Hold Release Hold
ap_holds_pkg.insert_single_hold ap_holds_pkg.release_single_hold
How to Define Custom Holds? Payables Manager --> Set up --> Hold and Release Hold Restrictions PAYMENT BATCH SELECTED INVOICES: You cannot apply holds to an invoice you have selected for
on Approvals ("holds") to an invoice nch. one or more of the scheduled of the Invoice Workbench. All Payments, Hold Future Invoices, or ption of specifying an Invoice Amount
Manual Release Allowed? urchase order PTA Not Allowed for a supplier site record for the Allowed order Allowed lier site window for this supplier. Allowed Allowed lerance amount. Allowed lerance amount (only applicable if Allowed Allowed t price X (1 + % tolerance). Allowed + % tolerance). Allowed tion amounts. Manual hold not allowed. Allowed d resubmit approval.
Hold Placement
you specify for a supplier site
valid purchase order number for
t in the Tax Options window, and you . The tax code on the invoice does not
r. a supplier site in the Suppliers Sites
Invoice Validation
Accounting Allowed Yes
Manual
No
Invoice Validation
No
Invoice Validation Invoice Validation Invoice Validation
Yes Yes Yes
Invoice Validation
payment in a payment batch.
No
Manual Release Allowed Yes
Yes
Yes
Yes Yes Yes
Hold Removal
Adjust invoice amount and resubmit Invoice Validation Change Invoice Amount Limit option for supplier site and resubmit Invoice Validation Manually release in the Invoice Holds tab Manually release in the Invoice Holds tab. (Note: you can submit the Invalid PO Supplier Notice to request a valid PO from the supplier). Change the tax code on the invoice to match the tax code assigned to the account. Disable the Enforce Tax From Account Payables option In the Tax Options window in General Ledger, change the tax code association, or manually release the hold in the Invoice Holds tab. Release in the Invoice Holds tab Release in the Invoice Holds tab Manually release in the Invoice Holds tab (To prevent future Supplier holds, disable the Hold Unvalidated
No
Correct error that caused automatic withholding of tax to fail. For example, you may need to set up a period in the withholding withholding tax special calendar.
